2012 (1) TMI 156

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....the calculation of small-scale exemption limit nor did they pay duty on these three items. As brought out in a statement at page no. 17 of the appeal papers, the composition of these three items are as under as indicated against serial nos. 1, 3 and 6 :- Sl. No Name NP- 100 Water Detanil R.Wet Nico- solvo Urea Remarks                   1. Tasopal-30 15.0 83.0 2.0 - - - For 100 2. Tasopal-50 25.0 66.0 9.0 - - - - 3. Tasopal-100 50.0 50.0 - - - - - 4. Tasopal-100EC 54.0 41.0 5.0 - - - - 5. Carewet (N) 85.0 11.0 4.0 - -....

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.... learned advocate appearing for the appellants contends that NP 100 is the principal raw material, which is produced by the appellants and the same is being sold in the name of 'Tasopal-30', 'Tasopal-100' and 'Carewet (o)' after mere dilution and, therefore, according to him, there is no manufacture involved in respect of these three items and, therefore, neither duty is payable on these items nor their value of clearances is required to be included in the small-scale exemption. In support of his case, the learned Advocate refers to the decision of the Tribunal in the case of Commissioner of Central Excise, Coimbatore v. Kayes Agro Industries - 2001 (132) E.L.T. 701 (Tri.-Chennai), the appeal against which appeal has been dismissed by the H....

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....with the learned Advocate that 'Tasopal-30' and 'Carewet (o)' cannot be considered as manufactured products. However, in the case of 'Tasapol-100', we find that it is produced by adding equal amount of 'Water' to 'NP 100' and hence the same can be considered to be arising from mere dilution of 'NP 100' by adding a fixed amount of 'Water'. Applying the ratio of the cited judgments one can hold in respect of 'Tasopal-100' that the same is resulting from the process of mere dilution and, therefore, it is not a manufactured product. 6. With our findings as above, we are of the view that the clearances of 'Tasopal-30' and 'Carewet (o)' are to be considered as dutiable products and the value of the same has to be added to the value of cle....